Can Meta’s Social Media Empire Survive the FTC Antitrust Trial?

Summarize and humanize this content to 2000 words in 6 paragraphs in English Social media is at the heart of Meta Platforms’ (META) growth. The company taps into a vast user base through major platforms like Facebook, Instagram, and WhatsApp. This digital ecosystem drives Meta’s revenue and expansion, making social media integral to its long-term success. While Meta continues to see strong growth in its social media metrics, its dominance is now under intense scrutiny. The ongoing FTC antitrust trial challenges the company’s acquisitions and market power, potentially reshaping its future in the social media space. Let’s examine key figures from MSD on Meta to assess its social media business strength. Meta operates five popular social media platforms under its Family of Apps (FoA) unit: Facebook, Instagram, WhatsApp, Messenger, and Threads. The FoA unit generated $47.3 billion in revenue in Q4 2024, contributing over 97% of the company’s total revenue for the quarter. According to Main Street Data, Meta’s family daily active people (DAP) reached an average of 3.35 billion in December 2024. This marked a year-over-year growth of 5%. Meanwhile, the average revenue per person (ARPPU) reached $14.3 in Q4 2024, marking a 15.6% increase compared to the previous year. Turning to profitability, Meta reported an operating income of $28.3 billion for its Family of Apps unit in Q4 2024. This represents a 35% year-over-year growth, accounting for 58.6% of the company’s total revenue. ​The Federal Trade Commission (FTC) is pursuing a significant antitrust case against Meta. The FTC alleges that the company’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were anti-competitive measures aimed at neutralizing potential threats to Facebook’s dominance in the social networking market. The trial, led by U.S. District Judge James Boasberg, could have major consequences for Meta, potentially including the forced sale of Instagram and WhatsApp. However, even if the FTC prevails, appeals could postpone any breakup for years. Ultimately, Meta’s status as a dominant social media force hangs in the balance. Overall, META stock has a consensus Strong Buy rating among 46 Wall Street analysts on TipRanks. That rating is based on 42 Buys, three Holds, and one Sell assigned in the last three months. The average META price target of $715.3 implies a 43% upside from current levels.